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Tuesday, October 1

Some of the largest macro moves in the market today include: US Dollar Index +0.4%. USD/CNH +0.3%. Gold +0.7%. Some of the largest moves among US mega-cap stocks include: Alphabet Inc (GOOG) +1.5%. Alphabet Inc (GOOGL) +1.5%. Apple Inc (AAPL) -1.2%. 

The annual inflation rate in the Eurozone fell to 1.8% in September, below the European Central Bank's (ECB) target of 2%. This decline was driven by a significant drop in energy prices and slower increases for services, while food prices saw a slight uptick. The core inflation rate also eased slightly to 2.7%, raising expectations that ECB might consider further interest rate cuts.

In Japan, business confidence among large manufacturers remained steady at its highest level in two years during Q3 of 2024 as moderate economic recovery continued. Additionally, Japan’s unemployment rate dropped more than expected to 2.5% from July's peak of 2.7%, indicating an improving labor market despite ongoing challenges such as contracting factory activity reflected by revised PMI data showing continuous but softening declines.

Geopolitical tensions have escalated with Israel initiating ground operations into Lebanon following recent conflicts involving Hezbollah militants firing rockets into Israeli territory after targeted airstrikes killed key figures within their ranks last week; this has led investors towards safe-haven assets like gold which advanced moderately amidst broader cautious sentiment across global markets.

SPDR Gold Shares (GLD) [+0.9%]
SPDR Gold Shares (GLD) has gained momentum, rising 0.9% in pre-market trading. Year-to-date, the ETF has surged significantly, outperforming the S&P 500 with a notable increase in the third quarter. Recent price movements are supported by a spike in gold prices, which reached an all-time high recently amid heightened geopolitical tensions and expectations of a cautious approach to interest rate cuts from the Federal Reserve. Goldman Sachs has revised its gold price forecast for early 2025, increasing it to $2,900 per ounce, driven by anticipated ETF inflows and robust central bank purchases, particularly from emerging markets. Social media discussions highlight strong demand dynamics for gold, underscored by ongoing central bank activities and recent comments regarding the economic outlook.

SPDR Dow Jones Industrial Average ETF Trust (DIA) [-0.3%]
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has seen a price decline of 0.3% since Monday. Key contributors to this performance include Apple Inc. (AAPL), which faced challenges related to potential iPhone 16 production cuts due to weak demand and a fire at a component plant in India, alongside Boeing Co. (BA), contemplating a $10 billion stock sale amid operational strikes and safety concerns about its 737 aircraft. Additionally, Walt Disney Co. (DIS) experienced a stock drop following a downgrade from "Outperform" to "Market Perform." In the broader market context, Federal Reserve Chair Jerome Powell signaled that future interest rate cuts will be more modest, while geopolitical tensions surrounding Israel's military operations in Lebanon have escalated. The Russell 2000 Index also declined slightly, reflecting overall market sentiment that may correlate with DIA's recent performance.

PINS |+4.2%|+968.1M
Pinterest Inc | Interactive Media & Services
Pinterest Inc has been added to Goldman Sachs' Americas Conviction List, which typically reflects a strong endorsement of the stock's potential. This addition comes with a Buy rating and a price target of 46. Goldman Sachs anticipates continued sales growth for Pinterest at a mid-to-high teens percentage pace. In premarket trading, the stock was noted to be up 3.4%, with an overall increase of 4.5% since Monday. Additionally, Chief Financial Officer Brau Donnelly sold 30,280 shares at 32.72 on September 27, 2024, prior to the current market activity. Social media discussions have echoed the positive sentiment following Goldman Sachs' announcement.

NIO | +3.9%| +563.8M
NIO Inc | Automobile Manufacturers
NIO Inc. reported strong delivery results for September and the third quarter of 2024, revealing the delivery of 21,181 vehicles in September, a 35.4% year-over-year increase. This total included 20,349 vehicles from its premium brand and 832 from its family-oriented brand, ONVO. For the third quarter, NIO achieved a record delivery of 61,855 vehicles, up 11.6% year-over-year, bringing cumulative deliveries to 598,875 as of September 30, 2024. The ONVO L60 SUV began deliveries in late September, contributing to this performance. Social media discussions noted the positive reception of these results, highlighting that NIO's shares surged by approximately 4.9% in pre-market trading on October 1st, attributed to the record-high deliveries. Trading volume reached 1.95 billion shares in September, marking the highest level since January 2021.

CVS | +1.9% | +1.5B
CVS Health Corp | Health Care Services
CVS Health Corp is undergoing a strategic review that may involve a potential separation of its retail and insurance divisions. This process has been in progress for several weeks, with the company's board engaging bankers to assist in the evaluation. Discussions are ongoing, but no immediate decisions have been reached. Glenview Capital Management is set to meet with CVS executives to discuss strategies for enhancing company performance. Social media activity has highlighted these developments, noting the board's engagement with financial advisors and the plans of a major shareholder to pursue an activist agenda. Despite CVS being recognized as a strong performer within its sector for the month, it continues to lag behind peers on a year-to-date basis. This context coincides with a recent increase in CVS's stock price.

BA | -1.0% | -929.8M
Boeing Co | Aerospace & Defense
Boeing Co. is reportedly considering raising at least $10 billion through a stock sale, contributing to a premarket dip of approximately 1.3% in its shares. This potential equity raise occurs amid an ongoing strike involving 33,000 workers, which has already impacted the company’s operations. Analysts suggest that Boeing may delay this fundraising effort for at least a month while assessing the strike's financial implications. Compounding these challenges, the U.S. National Transportation Safety Board (NTSB) has issued urgent safety recommendations regarding the rudder control system of Boeing 737 aircraft, following concerns about at least 40 foreign operators using potentially unsafe parts. Additionally, Boeing secured a $6.9 billion contract with the U.S. Air Force and is reportedly landing contracts exceeding $9 billion after hours, despite a significant debt load of about $60 billion and operating cash flow losses exceeding $7 billion for the first half of 2024.

LI | +3.2% | +1.4B
Li Auto Inc | Automobile Manufacturers
Li Auto Inc. reported robust delivery figures for September 2024, with 53,709 vehicles delivered, reflecting a year-over-year increase of nearly 49%. This performance contributed to a total of 152,831 vehicles delivered in the third quarter, marking a 45% rise compared to the same period last year. Cumulatively, the company has delivered 341,812 vehicles in 2024, bringing its total deliveries to 975,176 as of September 30, approaching the milestone of one million total deliveries. These results have sparked significant discussion on social media, emphasizing the record-breaking nature of these deliveries. Concurrently, NIO Inc. experienced a notable increase in its stock price following its own strong delivery results for September and the third quarter, which highlighted a year-over-year rise in deliveries of over 35%.

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